Research On The Internal Control Failure Of H Company And Related Party Transaction Fraud

In recent years,related party transaction fraud has become one of the three major problems of Listed Companies in China.There are related party transaction fraud cases such as kangdexin,Kangmei and Shenma.Related party transaction is regarded as an important means to optimize capital structure,improve asset profitability and reduce opportunity cost.At the same time,due to the high complexity and strong concealment of related transactions,and seriously interferes with the quality of accounting information disclosure or even eliminate the related party transaction asset profitability.Studies have shown that the occurrence of related party transaction fraud is often related to the failure of internal control.The provide conditions for the occurrence of related party transaction fraud.If the internal control is sound and running well,then the related transaction fraud will be cut off by effective control measures,and the related transaction fraud will not occur.It can be seen that the failure of internal control actually provides the basic environment for the related party transaction fraud.We can start from the internal of the enterprise,strengthen the internal control measures and improve the internal control system to achieve the purpose.It is a meaningful topic to study how to strengthen the internal control to reduce or even eliminate the related party transaction fraud will be cut off by effective control measures for the related party.Based on the theory of internal control and related party transaction,this paper constructs the relationship between them,and concludes that the failure of internal control is very easy to cause fraud in related party transactions.Next,and it is concluded that the occurrence of H company's related transaction fraud is due to the internal control problems in the internal environment.H company with related party transaction fraud and internal control problems,and help other enterprises with similar problems control measures.